Valuable Lessons From Rich Dad Poor Dad by Robert Kiyosaki
RICH DAD, POOR DADSUBMITTED TO:DR. JYOTI VYASSUBMITTED BY:ARCHESH PATODI
Symbiosis University of Applied Sciences (SUAS)
INDEXAbout The Book.Authors Profile.The Rich Dont Work For Money.Why Need Financial Literacy?Mind Your Own Business.History Of Taxes & Power Of Corporation.The Rich Invent Money.Work to Learn, Dont Work for Money.Learnings.Why You Should Read It?Who Should Read It?Authors Writing Style.
ABOUT THE BOOKTitle : Rich Dad, Poor Dad
Author : Robert T. Kiyosaki Sharon Lechter
Publication Year : 1997
Publisher : Warner Books ed.
Genre : Self-help, personal finance, entrepreneurship, business, investing, economics.
ISBN : 0-446-67745-0
AUTHORS PROFILEROBERT T. KIYOSAKI
Robert Toru Kiyosaki(born April 8, 1947) is an American businessman, investor, educator and motivational speaker. Kiyosaki is the founder of the Rich Dad Company, a private financial education company that provides personal finance and business education to people through books, videos, games, seminars, blogs, coaching, and workshops. He is also the creator of the Cashflow board and software games. Kiyosaki is the author of more than 26 books, including the international self-published personal finance blockbusterRich Dad Poor Dad series of books which has been translated into 51 languages, available in 109 countries and have combined sales of over 27 million copies sold worldwide.
SHARON L. LECHTER
Sharon L. Lechter(born January 12, 1954) is an American accountant, investor, motivational speaker. Sharon Lechter is also the founder and CEO of Pay Your Family First, a financial education organization.In 1997 Sharon co-authored the international bestsellerRich Dad Poor Dad, along with 14 other books in the Rich Dad series and was CEO of the Rich Dad company for over 10 years.Lechter's financial literacy board game ThriveTime for Teens, is a national award winner including the GOLD Moms Choice Award, Creative Child Magazines 2010 Game of The Year, Dr. Toys Best Vacation Product and a five-star rating from WTS Toy Reviews. Sharon is recognized globally as an expert on the topics of financial education for children and entrepreneurship.
Having two dads offered me the choice of contrasting points of view : one of a rich man and one of a poor man By : Robert T. Kiyosaki
Lesson 1: The Rich Dont Work For Money
The poor and the middle class work for money. The rich have money work for them.
Opportunities come and go. Being able to know when to make quick decisions is an important skill.
The joy that money brings is often short-lived, and they soon need more money for more joy, more pleasure, more comfort, and more security.
The main cause of poverty or financial struggle is fear and ignorance, not the economy or the government or the rich. Its self-inflicted fear and ignorance that keep people trapped.
What intensifies fear and desire is ignorance.
Its not how much money you make. Its how much money you keep.
Lesson 2: Why Teach Financial Literacy?
If you want to be rich, you need to be financially literate.
Accounting is possibly the most confusing, boring subject in the world, but if you want to be rich long-term, it could be the most important subject.
Intelligence solves problems and produces money.
Money without financial intelligence is money gone soon.
Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
An asset puts money in my pocket. A liability takes money out of my pocket.
Wealth is a persons ability to survive so many number or days forward-or, if I stopped working today, how long could I survive?
Wealth is the measure of the cash flow from the asset column with the expense column.
Lesson 3:Mind Your Own Business
Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities or personal effects that have no real value once you get them home.
Here, Mind Your Own Business, means to build and keep your asset column strong.
Keep expenses low, reduce liabilities, and diligently build a base of solid assets.
A true luxury is a reward for investing in and developing a real asset.
What Are Real Assets??Business that do not require your presence.
Income-generating real estate.
Royalties from intellectual property and patents.
Anything else that has value, produces income or appreciates, and has a ready market.
Lesson 4:The History Of Taxes And The Power of Corporations
Roberts rich dad just played the game smart, and he did it through corporations-the biggest secret of the rich.
The rich created the corporation as a vehicle to limit their risk to the assets of each voyage.
It is the knowledge of the legal corporate structure that really gives the rich a vast advantage over the poor and the middle class.
The income-tax rate of a corporation is less than the individual income-tax rates.
Every time people try to punish the rich, the rich dont simply comply. They react. They have the money, power, and intent to change things. They dont just sit there and voluntarily pay more taxes. Instead, they search for ways to minimize their tax burden.
With money comes great power that requires the right knowledge to keep it and make it multiply.
If you work for money, you give the power to your employer. If money works for you, you keep the power and control it.
Financial intelligence is simply having more options.
So why would you want to increase your financial intelligence? Because you want to be the kind of person who creates your own luck. You take whatever happens and make it better.
Lesson 5:The Rich Invent Money
Often in the real world, its not the smart who get ahead, but the bold.
We all have tremendous potential, and we all are blessed with gifts. Yet the one thing that holds all of us back is some degree of self-doubt.
Financial genius requires both technical knowledge as well as courage. If fear is too strong, the genius is suppressed.
Today, wealth is in information. And the person who has the most timely information owns the wealth.
Old ideas are the biggest liability.
Rich people are often creative and take calculated risks.
It was excessive fear and self-doubt that were the greatest detractors of personal genius.
Lesson 6:Work To Learn Dont Work For Money
Job security meant everything to Roberts educated dad. Learning meant everything to his rich dad.
Robert recommend to young people to seek work for what they will learn, more than what they will earn.
Look down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race.
Education is more valuable than money, in the long run.
Life is much like going to the gym. The most painful part is deciding to go. Once you get past that, its easy.
Job is an acronym for Just Over Broke.
The Main Management Skills needed For Success Are:Management of cash flow.
Management of systems.
Management of people.
LearningsThose who want to get rich should know the difference between assets and liabilities. And should focus to acquire more and more Real Assets.
Education is more valuable than money- in long run.
Failure inspire Winners & Failure defeat Losers.
Winners are not afraid of losing.
Keep your expenses low and reduce your liabilities.
One should work to learn something, not only to earn money.
Great opportunities are not seen with your eyes. They are seen with your mind.
Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.
The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth seemingly instantaneously. An untrained mind can also create extreme poverty that can crush a family for generations. By : Robert T. Kiyosaki
Why One Should Read ?Broaden your vision.
Redefine your views about money.
How to start and run a company.
In short , if you really have dreams to touch the sky , this book is highly recommended.
Who Should Read It?This book has very good amount of material facts and information for every person irrespective of his age, financial status.
Those who want to get rich should read this book once in his lifetime and should implement it.
Authors Writing StyleKiyosaki is known for simplifying complex concepts and ideas related to business, investing, finance, and economics. He has garnered an international reputation for his straight talk, irreverence, courage, and views on money and investing that often contradicts conventional financial advice. Kiyosaki believes that the world needs more entrepreneurs to create jobs to spur economic growth and solve pressing world issues.Much of his teachings and views encourage people to become financially educated and to take an active role in investing for their financial future